Compensation

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CHAPTER 13
Compensation Responsibility Job Evaluation
Systems Job Rating Plan
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CHAPTER 13 (cont.)
Knowledge Responsibility Yesterday, Today,
Tomorrow
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COMPENSATION

• Condition of labor Market
• Prevailing Wage Rates
• Cost of living
• Ability to pay
• Union Strength
• Worth of the Job
• Government Regulations

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GENERAL COMPENSATION ISSUES

• Compression
• Equity
• Secrecy
• Organizational Justice
• Changing Compensation Strategies
• Broadbanding
• Pay for Performance/Skill/Knowledge

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• FACTOR
• RESPONSIBILITY

DEGREES
1) Tools 2) Safety 3) Products
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JOB EVALUATION SYSTEMS

• I. NON-QUANTITATIVE
• 1. Ranking
• 2. Job Classification or Grading--
  Commonalties
• II. QUANTITATIVE
• 1. Factor Comparison-- Five Factors
• 2. Point Method-- Factors, Subfactors
• Degrees

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NATIONAL METAL TRADES ASSOCIATION JOB RATING PLAN
Also adopted by the National Electrical
Manufacturers Association and the National
Position Evaluation Plan.
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POINTS ASSIGNED TO FACTOR DEGREES AND RANGE FOR
GRADES
FACTOR 1st 2nd 3rd 4th 5th Degree Degree Degree D
egree Degree
Skill 1. Knowledge 14 28 42 56 70 2.
Experience 22 44 66 88 110 3. Initiative
and Ingenuity 14 28 42 56 70
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POINTS ASSIGNED TO FACTOR DEGREES AND RANGE FOR
GRADES
FACTOR 1st 2nd 3rd 4th 5th Degree Degree Degree D
egree Degree
Skill 1. Knowledge 14 28 42 56 70 2.
Experience 22 44 66 88 110 3. Initiative
and Ingenuity 14 28 42 56 70 Effort 4.
Physical Demand 10 20 30 40 50 5. Mental or
Visual Demand 5 10 15 20 25
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POINTS ASSIGNED TO FACTOR DEGREES AND RANGE FOR
GRADES
FACTOR 1st 2nd 3rd 4th 5th Degree Degree Degree D
egree Degree
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POINTS ASSIGNED TO FACTOR DEGREES AND RANGE FOR
GRADES
FACTOR 1st 2nd 3rd 4th 5th Degree Degree Degree D
egree Degree
Responsibility 6. Equipment or Process 5 10 15
20 25 7. Material or Product 5 10 15 20 25 8. Sa
fety of Others 5 10 15 20 25 9. Work of
Others 5 10 15 20 25
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POINTS ASSIGNED TO FACTOR DEGREES AND RANGE FOR
GRADES
FACTOR 1st 2nd 3rd 4th 5th Degree Degree Degree D
egree Degree
Responsibility 6. Equipment or Process 5 10 15
20 25 7. Material or Product 5 10 15 20 25 8. Sa
fety of Others 5 10 15 20 25 9. Work of
Others 5 10 15 20 25 Job Conditions 10.
Working Conditions 10 20 30 40 50 11.
Hazards 5 10 15 20 25
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SCORE RANGE GRADES 139 and under...12 1
40-161..11 162-183..10 1
84-2059 206-2278 228-2
497 250-2716 272-293
5 294-3154 316-337
3 338-3592 360-381
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KNOWLEDGE
This factor measures the knowledge or equivalent
training required to perform the position duties.
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KNOWLEDGE
1st Degree Use of reading and writing, adding and
subtracting of whole numbers following of
instructions use of fixed gauges direct reading
instruments and similar devices where
interpretation is not required.
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KNOWLEDGE
2nd Degree Use of addition, subtraction,
multiplication and division of numbers including
decimals and fractions simple use of formulas,
chars, tables, drawings, specifications,
schedules, wiring diagrams use of adjustable
measuring instruments checking of reports,
forms, records and comparable data where
interpretation is required.
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KNOWLEDGE
3rd Degree Use of mathematics together with the
use of complicated drawings, specifications,,
charts, tables various types of precision
measuring instruments. Equivalent to 1 to 3
years applied trades training in a particular or
specialized occupation.
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KNOWLEDGE
4th Degree Use of advanced trades mathematics,
together with the use of complicated drawings,
specifications, charts, tables, handbook
formulas all varieties of precision measuring
instruments. Equivalent to complete accredited
apprenticeship in a recognized trade, craft or
occupation or equivalent to a 1 year technical
college education.
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KNOWLEDGE
5th Degree Use of higher mathematics involved in
the application of engineering principles and the
performance of related practical operations,
together with a comprehensive knowledge of the
theories and practices of mechanical, electrical,
chemical, civil or like engineering field.
Equivalent to complete 4 years of technical
college or university education.
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e.g. Responsibility

• 1) For Tools
• 2) For Safety
• 3) For Products
• (6 Factors Total to 3000 pts.
• Responsibility 800)

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